United Overseas Bank (UOB) has been fined INR10m ($1,40,940) by the Reserve Bank of India (RBI) for failing to comply with regulations.
The central bank said that the bank failed to adhere to the norms of section 10B of the Banking Regulation Act, 1949 (the Act).
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Commenting on the fine, the central bank said: “This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Act, taking into account the failure of the bank to adhere to the aforesaid provisions of the Act.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank.”
Several Indian banks have been under RBI’s scanner for compliance failures in recent times.
In August this year, RBI fined seven public sector lenders for breaching norms on current account opening.
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By GlobalDataThis March, 19 Indian lenders, including SBI, ICICI Bank, YES Bank, and IDBI Bank, were fined by the central bank for flouting the guidelines on the use of interbank payments network SWIFT.
In February, state-owned lenders Corporation Bank and Allahabad Bank were fined for non-compliance with RBI regulations. In the same month, UCO Bank, Axis Bank, and Syndicate Bank were fined for compliance failures.
